Quite frankly, you deserve the good life! You’ve worked hard for most of your life, and it’s time to enjoy the things that came your way. Without further ado, let’s look at how you can retire with money in the bank.
Unfortunately, the very best advice out there is often too late. The best time to start saving for your pension is in your 20s. It’s very easy to say that now (we all know how tough it was to manage finances in your 20s!) However, the earlier you start, the better. If you’re in your 30s or 40s, and beginning to think about retirement planning, then put money away now. The earlier you start, the less money you need to put aside. It won’t even feel like a burden. But rest assured, after 30-40 years, it will grow significantly.
Spend less than you earn
Here’s another piece of blindingly obvious advice, but it’s something that many people tend to ignore. The basics of saving and retirement is spending less than you earn. It’s a simple formula, but it’s the only way to build wealth. With the excess money, you can simply put it away in your savings account. Try to do this before the money even hits your current account. Set up an automatic transfer on the day your income arrives.
Take advantage of your 401(k)
For many workers, their 401(k) contributions are matched by their employee. In other words, they give you free money every time you put cash aside for retirement. If you’re serious about retiring rich, this isn’t something you can afford to turn down! Try to put as much money as possible towards your 401(k) pension pot. Let your employer slowly double your pension fund for free.
Make wise property decisions
A huge portion of our equity is safely secured in our homes. It’s imperative that you make savvy property decisions throughout your life. Real estate investments tend to increase over time. So, if you buy into the right house, it will eventually add value to your retirement portfolio. When it comes close to retirement age, think about downsizing to unlock a big portion of equity. Take a look at Churchill retirement homes, and find a comfortable place to live out your golden years.
One last piece of advice before we go. Saving and pensions are all well-and-good. However, if you’re looking to really build wealth, you need your money to work harder. Only a strong investment account will do that. Think about putting your money in strong, growing companies, and reap the rewards in 10-20 years.
That’s all for now, folks. We hope you’ve found some useful information here!